marginal , average and total revenue Flashcards
1
Q
what is total revenue ?
A
its the total value of all sales a firm insures
1
Q
how to work out total revenue ?
A
total revenue = selling price * quantity sold
2
Q
what is average revenue and its calculation?
A
AR is the over; revenue per unit
AR= total revenue ÷ quantity
3
Q
what is marginal revenue and its calculation?
A
MR is the extra revenue received from the sale of an additional unit of output
MR= change in TR ÷ change in quantity
4
Q
what is perfect competition ?
A
a market structure where individual have no market power due to the amount of competition and are unable to influence price .
5
Q
what is imperfect competition?
A
make structures where firms do have some market power and can influence prices fro e.g oligopoly , monopoly
